Mumbai: Port-based logistics company Gateway Distriparks Ltd on Saturday said that it is planning to take its cold chain unit to capital market with an initial public offer (IPO) end of this month.

In filing to BSE, Gateway Distriparks said its subsidiary Snowman Logistics Ltd has filed its red herring prospectus (RHP) with the Registrar of Companies, Bengalore for a IPO of its equity shares.

In August 2013, Snowman Logistics had postponed its IPO plans citing poor market conditions.

The proposed IPO will give an exit route to the investors including Norwest Venture Partners (Mauritius), International Finance Corp., Mitsubishi Corp, Mitsubishi Logistics Corp and Nicheri Logistics Group Inc.

Snowman Logistics is an integrated temperature controlled logistics services provider with 23 temperature controlled warehouses across 14 locations in India including Serampore (near Kolkata), Taloja (near Mumbai), Palwal (near Delhi), Mevalurkuppam (near Chennai) and Bangalore capable of warehousing 58,543 pallets and 3,000 ambient pallets as of 31 March 2014, according to company’s website.

Snowman operates 370 reefer vehicles for primary and secondary transportation as of 31 March 2014, the website said.

In its filing to BSE, Gateway Distriparks said Snowman Logistics will issue 42 million equity share via IPO. The issue will open on 26 August and will close on 28 August. After the IPO, Gateway Distriparks’ equity stake in Snowman Logistics will come down to 40.17% from current 54.04%. The public holding post IPO will be at 25.23%, the company said.

It did not disclose other details.

Companies that have avoided tapping investors for three years are now starting to revive share-sale plans, seeking to benefit from buoyant equity markets and take advantage of an expected economic upturn. Only one company has raised money through an IPO so far this year. That was in April, when Wonderla Holidays Ltd, which runs water theme parks and amusement parks in southern India, sold Rs181 crore of shares. In March, steel processor Loha Ispat Ltd withdrew its IPO after it was underscribed.

While announcing earnings on 5 August, Gopinath Pillai, chairman at Gateway Distriparks had said that the listing of Snowman Logistics will unlock inherent value and the potential of the cold chain operations.

The cold chain unit or Snowman Logistics posted a net profit declined to Rs1.28 crore for the quarter ended 30 June 2014 against Rs3.65 crore for the corresponding quarter a year ago due to interest cost and expansion expenses.

In its February note, rating firm India Ratings and Research Pvt Ltd had assigned a stable outlook to the logistics sector for the financial year 2014-15 based on the strong likelihood of the sector continuing to display overall moderate growth rate despite a continued economic slowdown.

The firm said the value-added offerings of large logistics companies help support margins, thereby cushioning their credit profiles.

It said there is a strong business potential in new segments such as agricultural and cold storage logistics, logistics related to e-tailing.